Xanadu Mines has started a ramped-up second phase of exploration activities at its 90%-owned Oyut Ulaan project in the South Gobi region of Mongolia. The phase is targeting recently discovered shallow high-grade epithermal gold veins.
The accelerated ground exploration program including around 65 shallow holes for approximately 3000 metres of drilling will test strike and vertical extensions of the high-grade epithermal gold mineralisation intersected in broad spaced reconnaissance drilling and surface trenching.
Xanadu’s executive director and CEO Dr Andrew Stewart said, “With multiple near-surface gold targets, Xanadu has decided to fast-track exploration at the Oyut Ulaan gold discovery with an accelerated program, which includes an extensive drill program, continued regional trenching, extensive soil and regional sampling, metallurgical test work and preliminary economic evaluations.
"This comprehensive program will go a long way to characterising the discovery and allow assessment of the potential for a simple, low-cost mining operation at Oyut Ulaan which could generate meaningful cash flow.”
Following site visits and detailed technical review of the outstanding initial exploration results with expert narrow vein mining consultants, the Oyut Ulaan project is now at the stage that it has clear scope to become a very meaningful gold project.
Based on this work, the company has decided to commit approximately A$650,000 towards advancing the shallow high-grade gold discovery over the next four months.
While the Kharmagtai Copper-Gold Project with its scale and growing JORC copper-gold resource remains Xanadu’s priority project, the high-grade nature of the near surface Oyut Ulaan gold mineralisation, along with the current gold price and ability to add significant value with modest exploration expenditure, makes it a particularly attractive second project.
A very favourable development and pro-mining environment in Mongolia would allow rapid advancement of the project with continued positive results.
After a recent successful capital raising, Xanadu is in a strong financial position to rapidly advance its exciting Kharmagtai and Oyut Ulaan projects simultaneously.